Kline Study Shows Dip in Mineral-Based Wax Production Yields Innovative Strategies for End-Users
-- New Formulations Generate Marketing Opportunities --
LITTLE FALLS, NJ, October 8, 2007 – As petroleum-based wax supplies continue to erode on a global scale, major wax end-users are using the transition to vegetable-based and synthetic waxes as a marketing opportunity, according to a newly published study by worldwide consulting and research firm Kline & Company.
"The candle business consumes nearly 50% of the global wax supply, despite slow growth in this mature sector of the market,” says Geeta Agashe, a director of the Petroleum & Energy practice at Kline. “To keep pace in a sluggish market, candle companies are taking advantage of the opportunity to market candles made from vegetable and other plant-based waxes as cleaner burning and more environmentally-friendly. So, rather than lamenting the somewhat higher costs of alternative waxes, they are actually turning the challenge into a unique selling proposition for their products."
Mineral-based waxes, a by-product of the Group I solvent extraction lubricant base stock refining process, still account for 87% of waxes on the market, but growing demand for higher performance Group II/III/GTL lubes has sent the global supply of crude-based waxes into a slump. Data from Kline’s in-depth report Global Opportunities and Threats in the Wax Business, 2006-2020 indicates that vegetable, palm, and synthetic waxes are all set to expand over the next 15 years as declining petroleum wax supplies and specialty applications make room for alternatives.
"Developments in refining technology are putting a squeeze on wax supplies,” Agashe says. “The shortfall we predicted two years ago has actually given rise to new opportunities for alternative suppliers. There will always be a need for petroleum-based waxes, but significant growth in the market over the next 10 to 15 years will come from non-petroleum waxes, which we expect will grow to nearly one-fourth of the total supply by 2020."
Global Opportunities and Threats in the Wax Business, 2006-2020 provides a detailed analysis of supply, demand, pricing, competition, and trends in the global wax industry, with a focus on both conventional and synthetic waxes. The report also includes profiles for the top 20 global and regional suppliers, including technology vendors, as well as major global wax end-users.
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for nearly 50 years. For more information, visit www.KlineGroup.com.